Crypto-funded debit card in Cuba

Ley No. 143/2021 (Law 143/2021) – Ley de Prevención y Confrontación del Lavado de Activos, el Financiamiento al Terrorismo y a la Proliferación de Armas de Destrucción Masiva

Resolución No. 215/2021 del Banco Central de Cuba (BCC)

Resolución No. 216/2021 del Banco Central de Cuba (BCC)

Legalizes the use of virtual assets for financial transactions between individuals and legal entities, but only those authorized by the BCC.

Requires service providers dealing with virtual assets to obtain a license from the BCC.

Prohibits the use of virtual assets that are not authorized by the BCC.

Stresses compliance with AML/CFT regulations.

Identification and Verification:

Obtain and verify the identity of the customer and, where applicable, the beneficial owner. This includes:

For Individuals: Full legal name, date of birth, address, nationality, national identity number (e.g., ID card, passport), and occupation. Verification must be from reliable, independent sources (e.g., official documents).

For Legal Entities: Legal name, legal form, address of the registered office, names of directors/senior management, beneficial owners, and proof of existence (e.g., articles of incorporation, business registration certificate).

Purpose and Nature of the Business Relationship: Understand the purpose and intended nature of the business relationship or transaction.

Ongoing Monitoring: Conduct ongoing monitoring of the business relationship and transactions undertaken by customers to ensure consistency with the VASP's knowledge of the customer, their business, and risk profile, including the source of funds.

Risk-Based Approach (RBA): Implement a risk-based approach, meaning that the intensity of CDD measures should be commensurate with the level of ML/TF risk identified.

Enhanced Due Diligence (EDD): Must be applied for higher-risk categories, such as:

No Specific Classification: Cuban regulations, particularly Resolution 215/2021, do not provide a specific classification for stablecoins as e-money, payment tokens, or securities. Stablecoins are treated simply as a type of "virtual asset" (activo virtual) alongside other cryptocurrencies.

Definition of Virtual Asset: Resolution 215 defines a virtual asset as "a digital representation of value or rights that can be digitally transferred and stored and used for payment or investment purposes, and that can be negotiated or transferred electronically." This broad definition encompasses stablecoins without distinguishing them based on their pegging mechanism.

No Specific Stablecoin Reserve Requirements: The existing resolutions (215 and 216) do not outline specific reserve requirements for stablecoin issuers.

Central Bank Authorization Required: According to Resolution 215/2021, the use of virtual assets in commercial transactions between natural persons and companies, and the provision of virtual asset services, are subject to authorization by the Central Bank of Cuba.

Resolution 216/2021 further details the licensing requirements for Virtual Asset Service Providers (VASPs). Any entity, whether public or private, natural or legal person, that intends to operate with virtual assets, including potentially issuing a stablecoin, must apply for and obtain a license from the BCC. The BCC will grant licenses for specific activities related to virtual assets, such as exchange services, custody, or other related financial services.

No Specific Stablecoin Redemption Rights: The current Cuban regulatory framework does not explicitly establish specific redemption rights for holders of stablecoins.

Resolution 215/2021 initially authorized broad use of virtual assets under BCC supervision, but a March 2026 CiberCuba report indicates the BCC has since narrowed authorization to only a limited group of SMEs and one mixed company for cross-border payments, restricting the original scope.

Resolution 216/2021 (Gaceta Oficial No. 98 Extraordinaria de 2021): Establishes the licensing regime for Virtual Asset Service Providers (VASPs) operating in Cuba. These providers must obtain a license from the BCC to operate legally. This is where the primary regulatory oversight and potential for corporate taxation lie.

Individuals: Cuba does not have a specific capital gains tax for individuals in the Western sense, nor is there one specifically for cryptocurrency. Profits from speculative trading of virtual assets by individuals are not explicitly taxed under current Cuban law. It is highly unlikely that an individual's occasional profit from selling cryptocurrency would be considered taxable capital gain.

Businesses: If a licensed VASP or any other registered business engages in crypto trading as part of its commercial activity and generates profits, those profits would be subject to the general corporate income tax rate (Impuesto sobre Utilidades) applicable to businesses in Cuba, which is generally 35% for Cuban companies, with variations for foreign investment or specific sectors.

Businesses (Licensed VASPs):

None. As of the latest information, Cuba does not have any specific tax legislation exclusively dedicated to cryptocurrency. The existing legal framework (Resolutions 215 and 216 from the BCC) focuses on regulation, licensing, and control rather than a detailed tax regime for virtual assets.

Lack of Transparency: The Cuban government is not known for its transparency regarding internal enforcement actions, especially against individuals or smaller, private entities.

Nature of the Economy: In a state-controlled economy, significant independent financial operations (like an unregistered crypto exchange) would likely be shut down or absorbed without a public trial or detailed announcement.

Central Bank of Cuba (BCC) holds expanded enforcement powers, including unilateral authority to freeze bank accounts without notice and suspend Visa and Mastercard transactions.

Decree-Law 215/2021: Published in the Official Gazette on August 16, 2021, coming into effect 90 days later.